Long-term investment projects

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Long-term investment projects require a thorough understanding of all attributes of doing business in that country, including import/export restrictions, labor relations, supplier financing, tax rules, depreciation schedules, currency properties and restrictions, and sources of short-term and long-term debt, to name a few. China is currently the focus of investment and market penetration strategies of multinational firms worldwide including Acme. Your supervisor has asked you to gather information on some of these factors that your company or any MNE would want to consider when doing business in China. (This is the primary focus of this assignment.)
As you begin your research, you realize your company would make a significant profit from doing business in China. You also discover that policies on employee welfare, labor relations, etc. are the antithesis of what your CEO firmly believes. Do you include this information in your report, or just provide the strategic information you were asked to gather? (Please respond to this ethics question in a paragraph or two).

Use the Library and other Internet sources (you might start with the web sites listed here), to collect the information.

Extract from Guide to Doing Business in China
China Business Etiquette

For exporting to China, the laws, standards and custom regulation are listed at this website: http://www.export.gov/china/exporting_to_china/importregs.asp

This material is taken from the website: http://www.china.org.cn/ "The Chinese government attaches great importance to rationally determining, legally promulgating and timely adjusting labor standards to guarantee the lawful rights and interests of workers and promote economic and social development. At present, a labor standard system is basically in place, centering on the Labor Law of the People's Republic of China and covering areas such as working hours, rest and vacation, wage, prohibition of the use of child labor, special labor protection for women employees and under-age workers, work quotas and job safety and hygiene. The system has been adjusted and improved along with the country's economic and social development. China has made active efforts to establish a government-trade union-enterprise tripartite coordination mechanism in conformity with its actual conditions. In this mechanism, representatives from government labor and social security departments at all levels, trade unions and enterprises constitute a coordination organ to conduct communication and consultation on major problems relating to labor relations, and put forth suggestions on the drafting of labor and social security regulations, major reform programs, policies and measures concerning the interests readjustment of the three parties. The Chinese government encourages enterprises to continuously strengthen the functions of the workers' congresses and trade unions, and improve the system of employees' democratic participation. To form a self-coordination mechanism of labor relations in enterprises, China has trial-implemented and promoted a group contract system through equal consultation. Chinese laws and regulations stipulate that employees of an enterprise may conduct equal consultation and sign group contracts with that enterprise via trade union representatives or representatives directly recommended by the employees themselves, with regard to labor remuneration, working hours, rest and vacation, labor safety, labor hygiene, insurance, welfare and other matters. Equal consultation takes diversified forms, and group contracts have wide-ranging contents. Signing group contracts through consultation between the trade union and the enterprise has now been adopted by most enterprisesChina started to try out a labor contract system in the mid-1980s, and energetically promoted it in the 1990s. As a result, the labor contract system is now universally implemented in urban enterprises of every descriptionThe Chinese government adheres to a diversified distribution system with distribution according to work as the main form. The principle is to give priority to efficiency with due consideration to fairness. Reforms are being made to the wage system so that market mechanism can play its regulatory role in the distribution of income and that workers' incomes can increase as the economy develops and enterprises' economic returns increase. The Labor Law of the People's Republic of China, Regulations on Minimum Wages in Enterprises and Provisional Regulations on Wage Payments contain clear-cut provisions on standardizing the ...